Local distributed manufacturing: how the paradigm of the traditional production model is changing

Introduction

Today we are facing challenges that concern every area of human life.
Global communication, trade, social and working life are witnessing the reorganization of what until recently, and for centuries, has been the reference economic model for the entire earth community.  

Globalization, although today it is a topic that sees political, sociological and economic experts at the forefront to reduce negative effects such as the exploitation of human and/or natural resources, has led to a more rapid interconnection, bringing development to totally marginalized areas and lowering business costs to benefit new business opportunities. Speaking of manufacturing, the most widespread model that has accompanied our economic system is that of delocalized production, that is the possibility of organizing the production process by moving parts of the chain abroad.

With the advent of new technologies and with the growing demand for customization in design and production of products, with requests for faster delivery times, the manufacturing world is exploring new opportunities to adapt to these changes. Unlike a few decades ago, when delocalizing production seemed to be the only strategic choice to compete in the global market, today more and more companies are realizing the value of local production. 
 

Delocalized manufacturing    

In large-scale traditional production, the large quantities of standardized goods produced are marketed in different countries. Usually the fulcrum of the system is the large multinational company that markets the finished product. This is accompanied by a myriad of suppliers and often also intermediaries who act as a link with the final consumer. So what happens: the design of a product is done in one country. The target market may be yet another country. Physical production is moved to where labor and raw materials are cheaper, as economies of scale allow the costs of production, assembly and transport to be amortised... And so on.

The decision to relocate is dictated by the need of industrial production companies to have a lower production cost. The countries that have benefited from this need are China and Eastern European countries. In fact, the Chinese economy has exploited and accelerated its growth by offering industrialized countries the possibility of producing with a decidedly lower workforce. Another example is Bulgaria which has attracted investment by offering tax conditions to support its economic development policies. This phenomenon has created the desertification of important industrial districts in Europe and America with repercussions on an economic and social level. Among these the great reduction of jobs causing at the same time a loss of structural competitiveness as over time also very important functions such as engineering and design have been delocalized, also leading subcontractors to lose their raison d'exist.

Distributed Manufacturing

Today's economic landscape has become increasingly competitive and large manufacturers need to focus on speed to market, increased efficiency and consistent quality. We live and operate in a technologically connected world. Smaller, more responsive business units are better able to handle high-quality production locally than at any time in history.In the context of the fourth industrial revolution and the digital transformation of companies, the topic of production logistics chains, their evolution and digitization, the so-called Supply Chain 4.0, is becoming of primary interest for companies.

Distributed manufacturing reverses the traditional manufacturing approach, involving a digital network of decentralized manufacturing sites, spread across different geographic areas and connected via digital technology. The technologies that can enable this vision are already available, and many companies are moving to adopt them to innovate their business intelligence, transportation, warehouse and achieve greater flexibility in the supply chain.

3D printing is increasingly establishing itself with an impact at all levels of the industrial chain. Not only production, then, but also logistics and the supply chain will have to adapt, intercepting new opportunities for savings but also meeting new expectations and timelines. The Roboze 3D Parts service aims to accelerate this trend by providing an on demand and just in time solution, thanks to a network of certified and specialized manufacturers distributed all over the world. The goal is to help manufacturers reduce costs and time in the supply chain by digitizing their inventory, accelerating innovation and coping with rapidly changing market dynamics, with the production of custom parts whenever and wherever needed.

Need to order some parts and evaluate our technology? Contact our Roboze 3D Parts experts and see the opportunities offered by the Roboze Distributed Manufacturing model. For further information on the topic, read also Distributed and decentralized manufacturing: the future of part production for localized manufacturing.

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